loan modification: Do Homeowners Have a Right to a Loan Modification - 11/11/09 06:49 AM
A Minnesota court answered the question:  Do Homeowners Have a Right to a Loan Modification? And the answer is...no!
A lawsuit brought by Minnesota homeowners asserted that homeowners had a right to a loan modification.  U.S. District Court Judge Ann Montgomery disagreed, stating that loan modifications were not an entitlement.
No kidding!! Can you imagine the multi-year lender backlog that would occur if all homeowners had the unilateral right to modify a contract?  Did the plaintiffs to the lawsuit envision a world where lenders could modify a loan to their benefit any time they pleased.
Sometimes I just can't believe the … (2 comments)

loan modification: Do Loan Mods Work? - 11/10/09 01:53 AM
Do loan modifications work?  That question was not answered by the Treasury Department today in a news release announcing the growth of loan mods. The Treasury said there are now about 650,000 borrowers in the loan modification program, or 20% of eligible borrowers.  That figure is up from 16% participation in September.
What percentage of loan mod participants have missed a payment?  The Treasury doesn't answer that question.  Anecdotal reports suggest default rates at about 50%. 
Are loan mod programs with high default rates better than immediate foreclosure for housing prices and lenders?  My answer is yes because it keeps many … (4 comments)

loan modification: Why Distressed Homeowner's Facing Foreclosure Need Help - 10/12/09 03:27 AM
So why do distressed homeowner's facing foreclosure need help?  Of course, the obvious answer is to avoid the financial wrecking ball of foreclosure.
But what are the unforeseen consequences of foreclosure? Divorce comes to mind.  Depression?  Self-medicating with alcohol and drugs is a possibility.  Confused and insecure children?
And all of those problems are out of our control.   
So what can we do when we approach distressed homeowners?  For starters, don't be judgemental.  Helping out is not about the "why", it's about "what" we're going to do for the homeowner to avoid foreclosure.
Next, reassure them...outline alternatives like refinancing or loan modification.  Discuss … (0 comments)

 

Jimmy Stewart

San Antonio, TX

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The primary focus of my blog, "Avoid Texas Foreclosure" is to inform distressed homeowners of their options when: (1) their mortgage is currently in default; or, (2) they expect their mortgage to go into default. In addition, I plan to offer usable information to my fellow agents as they represent buyers and sellers in distressed property transactions.


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